RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

(b).
Recovery Suits
1. Globus Agronics Ltd.
Vs.
Rajasthan State
Ganga Nagar Sugar
Mills Ltd.
(RSGSM)
Case No. 387/2006
District
Sessions
Jaipur.
and
Judge,
2 Globus Agronics
Limited
Vs.
State Of Rajasthan
& Ors.
S.B. Sales Tax
Revision No. 33 of
2006
Hon’ble Rajasthan
High Court at Jaipur
A claim petition was filed
by the Company against
RSGSM for refund of the
amount deducted by
RSGSM for delay in the
supply of goods as
liquidated damages,
Permit fee and on account
of shortfall in increased
rates effected after
increase in the excise duty
for Rectified Spirit. The
case was heard by a Sole
Arbitrator appointed by
the Director in charge of
RSGSM who announced
his award on 13.4.2006
rejecting all the claims of
the Company.
The Company being
aggrieved by the said
award has filed an
application under Section
34 of the Arbitration and
Conciliation Act for setting
aside the award.
The Company had applied
for tax exemption under
the Rajasthan Sales Tax
Incentive Scheme, 1989
(“Scheme”) and was
accordingly granted the
eligibility certificate to this
effect by the concerned
authorities on November
25, 1997. The Company
was exempted from
payment of 75% of the
total tax liability for a
period of 7 years from
May 20, 1997 till May 19,
2004 for its products
under the Scheme.
Rs. 5,16,045
plus interest @
24% p.a. on the
above amount
from the date
the sum
became payable
to the
Company.
Cannot be
quantified
The Company
has already
made all the
payments for
which it has
claimed refund.
The Company
will suffer loss
of the amount
(being claimed
as refund) not
paid by the
Respondents.
The Company
has already
made the entire
demand of sales
tax as due. If
the case is
decided against
the Company,
the Company
would not get
refund of the
said amount.
The
application of
the Company
u/s 34 of the
Arbitration and
Conciliation Act
for setting aside
the award
which was
pending for final
hearing before
the Court of
District and
Sessions Judge,
Jaipur City has
been
transferred to
the Court of
Additional
District Judge
No.1 on March
20, 2009. On
March 20,
2009, record of
the matter from
the Sole
Arbitrator was
ordered to be
called for and
the matter was
fixed for
hearing on
August 1, 2009.
Since on August
1, 2009, the
record from the
Sole Arbitrator
was not
available, the
Court did not
pass any order
and fixed the
next date of
hearing on
October 31,
2009.
The matter was
listed on April
05, 2006
wherein the
Hon’ble
Rajasthan High
Court, Jaipur
issued notice to
the
Respondents.
Subsequently,
the matter was
listed for
placing
additional
documents on
record and the
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